Mapletree Logistics Trust (MLT) plans to issue 32,709,639 new units to raise up to $640 million in gross proceeds for an equity fund, revealed an SGX filing on Wednesday (13 September).
In particular, it intends to raise $353.5 million to $361.5 million for the fund by selling new MLT units through a private placement for between $1.143 and $1.175 apiece.
For the remaining amount, it plans to raise it via a non-renounceable preferential offering on the basis of one new MLT unit for every 10 existing shares held. These will be offered to qualified unitholders for between $1.113 and $1.145 per share.
DBS Bank, HSBC Singapore Branch and Citigroup Global Markets Singapore have been appointed as joint global co-ordinators and bookrunners for both fund raising exercises.
About $480.6 million in gross proceeds will be used to partly finance the purchase of Mapletree Logistics Hub Tsing Yi in Hong Kong for $834.8 million.
The 11-storey modern ramp-up warehouse is being bought from Mapletree Investments wholly-owned subsidiary Mapletree Overseas Holdings. The property has a net lettable area of 148,065 sq m and is one of only 14 modern warehouses in the city. In fact, it is fully leased by 12 reputable tenants such as HKTV, DKSH, Ever Gain and Adidas.
Meanwhile, another $146.9 million will be utilised to partly fund the redemption of the $350 million perpetual securities with an interest rate 5.375 percent that were issued on March 2012. The remaining $12.5 million will be used to pay the related expenses of the redemption and both fund raising.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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